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Recognized for big names like Calvin Klein and Coach, the American fashion industry also comprises numerous small and independent labels that are currently on the verge of collapse due to havoc wreaked by COVID19 on sales. Consumer demand in the country, which relies heavily on wholesale channels for sales, has dwindled. This has led to a virtual standstill for department stores cancelling their pre-Fall orders and also cutting off cash flow to brands.
Social media aids customer reach
Independent specialty stores across the US are trying to reach customers through social media platforms like Instagram to increase online sales. However, even these channels have been unable the fill the sales gap for these stores. Independent retailer McMullen is hosting Instagram Live sessions with designers to discuss latest collections.
Brands that operate own stores also have to pay rent, and without any government assistance, many small brands are likely to go bankrupt. Another challenge they face during
such times is paying employees. Just like a restaurant, the corporate offices of these brands house their shop-floor managers and sales assistants, many of whom are not paid when these small brands shut their doors.
In such a situation, these small, independent brands if they have an e-commerce operation they can sell or they can apply for loans. Another option open to these brands is to start selling places where they never seriously considered before like Amazon which consumers have flocked to order essential items.
Government loan to sustain business
But what these brands actually need is government assistance either in the form of capital or free rent. According to New York Times financial columnist Andrew Ross Sorkin, the government should offer a no-interest “bridge loan” to every business and self-employed worker to sustain them until the outbreak is over and people should be safely allowed to return to work. However, these companies should continue to employ at least 90 per cent of their work force at the same wage that they did before the crisis.
Though this seems like a utopian arrangement, it is currently the most ideal solution. As even though situations change, fundamental human behavior doesn’t. As soon as the pandemic ends, people will continue with their purchasing behavior. Hence, the government should support industries like fashion that enhance this consumer behavior.
According to a recent Bloomsberg survey, the US consumer confidence stabilised in May, indicating Americans are optimistic that the economic drubbing from the coronavirus pandemic will be short-lived.
The Conference Board’s index rose by 0.9 point to 86.6. The median estimate in a Bloomberg survey of economists had called for a reading of 87. The group’s subindex of expectations, based on consumers’ short-term outlook for income, business and labor market conditions, rose for a second month to 96.9. Attitudes about the present situation dropped by 1.9 points to 71.1, the lowest since 2013, as the proportion rating business conditions as bad rose to the highest since 1983.
The data add to signs that the worst of the fallout from the coronavirus is over, though there is still some way to go until the economy is back on track. While states are letting businesses reopen, confidence will be highly dependent on how well the coronavirus is contained and whether there’s a second wave of infections. Economists expect a significant pick-up in activity in the third quarter, but a return to normal is still nowhere in sight as tens of millions of Americans are out of work, schools remain closed and with no vaccine or significant treatment yet available for Covid-19.
The consumer confidence survey is one of the latest signs that while the US may be recovering from the initial shock of the pandemic, the pain is far from over. Americans are still losing jobs by the millions and reopenings have gone more slowly in some areas of the country.
The South Gujarat Textile Processors Association (SGTPA) has called for abolition of the practice of supplying grey cloth or unfinished fabric from power loom units to textile markets to stop the spread of the novel coronavirus. Instead, the association urged textile traders to make arrangements for direct delivery of unfinished fabrics to textile mills.
SGTPA president Jitendra Vakharia recently informed that around 40 textile mills will be operational after May 25 and retail stores and wholesale cloth mairkets in most states have started operations, the demand may be generated in the next fortnight, if no further lockdown is announced by the government.
The smooth operation of the man-made fibre (MMF) textile chain in and around Surat has been disturbed with about 95 per cent of the textile markets in the red zone yet to restart operation.
Faced with the mass exodus of migrant labourers and subdued demand of fabrics, the MMF industry has started with 30,000 power loom machines, which is 20 per cent of the installed capacity of 6.50 lakh machines.
According to the Pandesara weavers association, less than 10 lakh metres of fabric is weaved every day now against the installed capacity of 4 crore metres. The production will continue till yarn stocks last, he added.
The power loom units have reportedly resumed operation to safeguard their yarn stock, which was gathering dust in the units for the last 60 days.
Viscose yarn was lying in the godowns for almost two months and the stock has to be utilised before monsoon season before fungus growth.
Thousands of garment workers across Pakistan are battling against forced layoffs and months of unpaid salaries, as the deepening economic crisis caused by COVID-19 hits workers’ ability to support their families in the world’s fifth most populous country. The textile and apparel industry is
Nearly 9 per cent of Pakistan’s GDP – and almost 70 per cent of the country’s exports – comes from the industry. The pandemic has wreaked havoc on textile exports, which are mostly sent to the US, China, the UK and Germany.
Factory production has slowed dramatically across the country, with global fashion brands reducing or eliminating orders. This has precipitated a devastating crisis for Pakistani suppliers, who are passing the impact along to those least able to weather it: labourers living on meagre wages, campaigners say. In Lahore, hundreds of garment workers were reported to have organised a strike last week against the non-payment of salaries at multiple factories and activists claim factory owners are treating workers as expendable commodities.
Last year, Human Rights Watch censured Pakistan’s garment factories for rampant labour violations, including failing to pay the minimum wage, forcing hours of unpaid overtime, and neglecting to provide medical leave or adequate breaks to workers.
The ITM (International Textile Machinery) Exhibition, which is organized every two years, took a step forward by opening the Denim Technologies Special Section this year.
Denim, with its comfort and practicality, is one of the indispensable products of wardrobes and receives demands from all segments including youngsters and older people with the uprising trend of sportswear in recent years. Denim that is considered as one of the timeless products of the fashion world, effectuates a considerable economy from manufacturing to retail on this day. The success of the textile companies in Turkey in production and marketing and their proximity to European countries is considered as a geographical advantage. The fact that the ITM exhibitions are organized in Istanbul connecting the east and the west backs up this advantage.
Because of reaching the occupancy limit in all halls of the ITM 2020 Exhibition, the “Denim Technologies Special Section”, which was established for the first time as an additional hall, is making itself ready to welcome denim, fabric and ready-made garment manufacturers. It offers a great occasion for the visitors that the manufacturers will be exhibiting the latest technological innovations in denim production in this specialized hall from the machinery related to the sector to the dyes used in the production.
The Fashion Design Council of India has accepted all applications from its fashion designer members for its COVID-19 Support Fund and has now opened round two of the funding initiative to non-member designers.
The FDCI also announced that it would acknowledge the contributors to the fund at a later date as funds are still coming in.
The FDCI has been running ‘FDCInsights’ as a multi-media initiative to share stories, information, and tips from designers, stylists, and other fashion industry names during lockdown. The ‘digital discourse’ series has garnered 10 lakh views, the FDCI said.
The organisation’s next initiative is ‘FDCI Wall of Frame’ as an Instagram-based contest for fashion photographers. The contest, which closes on June 1, aims to recognise up-and-coming fashion photography talent in India and give new names a platform.
Six European apparel giants have stepped in to rally support and obtain financial aid for tens of thousands of Myanmar workers who lost their jobs in the economic fallout caused by the global Coronavirus pandemic. These include Swedish H&M (Hennes & Mauritz) Group, Spanish Inditex known for their brand Zara, Britain’s Next, Belgian-German-Dutch C&A, Denmark's Bestseller and Germany's Tachibo.
These brands have urged the stakeholders of Myanmar’s garment and footwear industry to make rapid and coordinated joint approach and action to help their workers. They have signed an agreement with suppliers and trade unions to protect the garment industry and workers in Myanmar from the impact of the COVID-19 pandemic.
This agreement with the Industrial Workers Federation of Myanmar (IWFM) and the IndustriALL Global Union aims to keep the doors of the industry open to the world and its workers protected during and after the pandemic.
Among other things, the apparel brands expressed their commitment to secure financial aid for workers and ensure that their working environment complies with health and safety rules to protect workers from novel Coronavirus transmission. The clothing companies also expressed support for workers' rights in participation in union activities and tripartite dialogue to settle issues.
Walmart has signed a deal with ThredUp, an e-commerce company that buys and sells secondhand clothes, shoes and accessories. As per this deal, customers can now browse thousands of pre-owned items for women and children on the big-box retailer’s website. They can get free shipping from Walmart, so long as they spend $35 or more. And if purchases don’t work out, they can return the items at a nearby store.
Walmart is also expanding its online fashion assortment at a time when it could grab market share in apparel and accessories. Its deal with ThredUp is a way to expand its online fashion offerings and get in on the sustainability trend. ThredUp bills itself as the largest online thrift store. Customers can send in clothes, shoes, handbags and more, so long as they’re in good condition. If they pass a quality inspection and sell, he or she gets a portion of the profits. The San Francisco-based resale company has over 45,000 brands, ranging from designer names like Marc Jacobs to fast fashion like Forever 21.
Walmart dominates the grocery business, but despite its efforts, it is still lags in fashion. It has acquired plus-sized women’s apparel company Eloquii and menswear company Bonobos, developed exclusive apparel lines with Ellen DeGeneres and Sofía Vergara and revived Scoop, a trendy brand that used to have stores in New York City.
ThredUp has struck deals with a growing number of retailers, including Gap, Macy’s and J.Crew-owned Madewell. Many of its partnerships with retailers have had a brick-and-mortar rather than e-commerce focus.
Shattered with COVID-19 lockdown and then devastating cyclone Amphan, the CII Chapter for northern half of West Bengal has urged the government to reintroduce old support schemes. It has urged the government to reintroduce the scheme where silk egg grower used to receive one time 60 per cent support from center and 20 per cent from the state to develop own set up. But it has been withdrawn during 2014-15. In place of 165 egg growers in Malda alone, now there are only 65 of them. Each grower produces around 4 lakh eggs a year. One hundred matured eggs, weighting 18 grams only, costs around Rs 200-400.
In addition, the chapter has also sought the reintroduction of the 10 per cent incentive on yarn sale volume.
A new report from the Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA) has urged the UK government to invest in sustainable fashion. The report finds the lockdown has dramatically altered consumer habits and attitudes as it has forced changes in that way they buy fashion – 35 per cent women respondents stated they intend to purchase fewer items of clothing in future, and 28 per cent reuse or recycle clothing more than usual. 68 per cent women sought more opportunities for repair and reuse and less pressure from advertising and social media o buy clothing. Fifty-eight per cent of the public reported having bought less clothing during the lockdown.
For the future, the report calls for more government investment in sustainable fashion. It calls for the creation of a dedicated green ‘Beyond GDP’ resilience fund to support burgeoning circular economy innovation within clothing and textiles (and other sectors) in order to enable greater regional resilience, to stimulate local demand and create high skilled local employment. This should also ensure that any job and training support program announced later this year supports growing circular economy jobs within fashion.
In addition, government should introduce stronger environmental standards on the industry including an Extended Producer Responsibility Scheme to incentivise waste reduction and improved design for durability and repair, and a reduction in VAT on repair services.
Consumers also need to be encouraged to keep up changes in their behavior. The RSA is launching the poll as part of its Regenerative Futures program, one of the five Bridges to a better future post-lockdown. Part of this program involves working with communities to develop interventions which change our relationship with fashion, from new ways of manufacturing to repair services and reuse networks.
